A personal line of credit in Singapore is a standby credit limit that you draw on when needed. Interest runs daily, only on the amount in use, at about 21% to 23% a year at the three local banks. That makes it cheap for a few weeks and expensive for a year.
“Best” on this page means lowest cost for the way you would use the line: the yearly rate, the annual fee, and what happens when a payment is missed.
A caution on borrowing: a credit line has no end date. Paying only the minimum keeps the debt alive for years at a rate close to a credit card’s.
How a Personal Line of Credit Works
MoneySense calls this a revolving loan. You borrow up to an agreed limit, repay, and the limit becomes available again. Unlike a term loan there are no fixed instalments, and the bank can recall the facility.
Three things set the cost:
- The daily rate. A yearly rate of 22.9% is about 0.063% a day on the amount drawn.
- The annual fee. Charged whether or not you borrow, though often waived in the first year.
- The minimum payment. A small percentage of the balance each month. Most of it goes to interest.
Three Banks’ Published Terms
We read the credit line page of the three local banks on 13 November 2026. Introductory offers are left out. All figures are the banks’ own.
| DBS Cashline | OCBC EasiCredit | UOB CashPlus | |
|---|---|---|---|
| Yearly rate (income S$30,000 and above) | 22.9% | 22.90% | 20.9% |
| Annual fee | $120, first year waived | $150, first year waived | $120, first year waived |
| Minimum monthly payment | 2.5% or $50, whichever is higher | 3% or $50, whichever is higher | 2% or $30, whichever is higher |
| Late fee | $120 | $150 | $120 |
| Rate after a missed minimum payment | Prevailing rate plus 8 percentage points | 28.00% or 36.00%, depending on the account | 29.98% |
| Minimum yearly income | $30,000; $60,000 for foreigners | $30,000; $45,000 for foreigners | $30,000; citizens and PRs only |
| Smallest charge | $10 minimum interest a statement | $5 minimum interest | $10 a month |
On the yearly rate alone, UOB’s is the lowest of the three. On the minimum payment, a lower percentage is not a benefit: it means the balance falls more slowly.
OCBC and UOB state the limit they may grant: up to 4 times monthly income, or 6 times for higher earners (annual income of $120,000 and above at OCBC; monthly salary above $10,000 at UOB). These follow the caps in MAS rules.
The Maths: Three Months Against Twelve
An illustrative borrower draws $8,000 at 22.9% a year.
Cleared in three equal monthly payments. The balance averages about $5,300 over the three months. Interest comes to about $305.
Paying only a 3% minimum for a year. Interest over 12 months is about $1,720. After paying roughly $2,750 in total, the balance is still about $6,960. Around 62 cents of every dollar paid went to interest.
For comparison, $8,000 on a three-year term loan at an EIR of 7% would cost about $890 in interest over the whole three years, and the debt would be gone.
These are illustrations on our own figures, assuming a constant rate and no fees. Our debt payoff calculator shows how long your own balance takes to clear at different monthly payments.
The short version: A line of credit suits borrowing you will clear within about three months. Compare the yearly rate, the annual fee from year two and the penalty rate. If you need the money for longer, a term loan with fixed instalments almost always costs less.
Where a Credit Line Fits, and Where It Does Not
It can fit:
- Uneven income, such as a freelancer waiting for an invoice to be paid.
- A short gap between a large bill and money you know is arriving.
- A standby source for emergencies, if the annual fee is waived or small. An emergency fund costs nothing in interest and comes first.
It does not fit:
- A planned large purchase. A personal loan fixes the end date and usually has a lower EIR.
- Clearing card debt with no plan. The rate is nearly the same. See balance transfers or, for larger debts, debt consolidation plans.
- Anyone who finds an open limit hard to leave alone.
Things That Catch People Out
- The annual fee after year one. A line kept “just in case” costs $120 to $150 a year at these banks unless waived. Ask before the anniversary.
- Missed payments change the rate. A single late minimum payment adds a late fee and a higher rate.
- It counts towards your borrowing limits. A drawn credit line is interest-bearing unsecured debt. It counts towards the industry-wide limit of 12 times monthly income, explained in how many personal loans you can take.
- Sixty days late affects every lender. Under MAS rules, once a minimum payment is 60 days past due, that bank cannot lend you more, and other lenders cannot raise your limits or issue new unsecured credit.
- Cheque books and cards make spending easy. A credit line linked to an ATM card behaves like cash, without the pause that an application creates.
What To Do Next
- Decide how long you would realistically carry a balance. Under three months, compare credit lines on rate and fee. Longer, compare term loans on EIR.
- If you already hold a line, check your last statement for the rate, the annual fee date and the balance.
- Set a monthly repayment well above the minimum by standing instruction. Our budget planner helps you find the amount.
- If you no longer need the line, closing it removes the fee. MoneySense suggests giving up unused credit lines when debt is a concern.
- If the balance has stopped falling, see MoneySense’s guide to managing debt or call Credit Counselling Singapore on 6225 5227.
